【正文】 e/FalseIndicate whether the statement is true or false.1.Private savings are the tax revenue that the government has left after paying for its spending。 and public savings is the ine that households have left after paying for taxes and consumption.ANSWER:FPOINTS:0 / 12.A budget deficit is an excess of tax revenue over government spending。 and a budget surplus is a shortfall of tax revenue from government spending.ANSWER:FPOINTS:0 / 13.A budget surplus decreases the supply of loanable funds, increases the interestrate, and stimulates investment.ANSWER:FPOINTS:0 / 14.The financial system is the group of institutions in the economy that help to match one person’s savings with another person’s investment.ANSWER:TPOINTS:0 / 15.A mutual fund is an institution that sells shares to the public and uses the proceeds to buy a selection, or portfolio, of various types of stocks, bonds, or both stocks and bonds.ANSWER:TPOINTS:0 / 1Multiple ChoiceIdentify the choice that best pletes the statement or answers the question.1.Which of the following is correct?a.Lenders buy bonds and borrowers sell them.b.Longterm bonds usually pay a lower interest rate than do shortterm bonds because longterm bonds are riskier.c.Junk bonds refer to bonds that have been resold many times.d.None of the above are correct.ANSWER:APOINTS:0 / 12.In aclosedeconomy, national saving equalsa.investment.b.ine minus the sum of consumption and government expenditures.c.private saving plus public saving.d.All of the above are correct.ANSWER:DPOINTS:0 / 13.If the current market interest rate for loanable funds is below the equilibrium level, then there is aa.shortage of loanable funds and the interest rate will rise.b.surplus of loanable funds and the interest rate will rise.c.shortage of loanable funds and the interest rate will fall.d.surplus of loanable funds and the interest rate will fall.ANSWER:APOINTS:0 / 14.Suppose that Parliament were to introduce a new investment tax credit. What would happen in the market for loanable funds?a.The demand for loanable funds would shift left and interest rates fall.b.The demand for loanable funds would shift right and interest rates rise.c.The supply of loanable funds would shift left and interest rates rise.d.The supply of loanable funds would shift right and interest rates fall.ANSWER:BPOINTS:0 / 15.If Canada increases its budget deficit, it will reducea.private saving and so shift the supply of loanable funds left.b.investment and so shift the demand for loanable funds left.c.public saving and so shift the supply of loanable funds left.d.None of the above are correct.ANSWER:CPOINTS:0 / 16.Crowding out refers toa.the increase in national saving that occurs when government runs a deficitb.the decrease in the real interest rates due to government borrowingc.a reduction in investment spending resulting from government borrowingd.a decrease in consumption spending resulting from government borrowingANSWER:CPOINTS:0 / 17.For a bank to be profitable, the loans it makes must _____ than the _____ obtaining funds.a.cost more。 price ofb.pay less interest。 total revenue fromc.make more interest。 total cost ofd.be less profitable。 total revenue fromANSWER:CPOINTS:0 / 18.Large budget deficits will likelya.increase the nation39。s pool of savingb.decrease the nation39。s pool of savingc.have no impact on the nation39。s pool of savingd.improve the nation39。s trade balanceANSWER:BPOINTS:0 / 19.The supply curve of loanable funds isa.upwardsloping, reflecting the fact that savers need a higher rate of interest to coax them into lending moreb.downwardsloping, reflecting the fact that savers will increase their supply for loanable funds at lower rates of interestc.upwardsloping, reflecting the fact that savers will increase their saving at lower rates of interestd.None of the aboveANSWER:APOINTS:0 / 110.Loanable funds area.the money in banks and other financial institutionsb.the amount of credit availablec.equal to the total value of capital in the economyd.available only to businessesANSWER:BPOINTS:0 / 111.If the market for loanable funds is not in equilibrium, which of the following factors must change to bring it to equilibrium?a.outputb.profitsc.the inflation rated.the interest rateANSWER:DPOINTS:0 / 112.In the market for loanable fundsa.higher interest rates discourage savingsb.lower interest rates encourage investmentc.lower interest rates make borrowers worse offd.higher interest rates increase the demand for loanable fundsANSWER:BPOINTS:0 / 113.Banksa.use people39。s deposits to make loansb.do not issue mortgage loansc.print and circulate money.d.have no positive impact on the economic systemANSWER:APOINTS:0 / 114.GDP last year in a closed economy was $2000, taxes were $100, government spending was $200, and consumption was $1200. What was national saving?a.$1000b.$800c.$700d.$600ANSWER:DPOINTS:0 / 115.Which of the following is correct?a.Bondholders bear higher risk than stockholders.b.Bondholders are issued owner shares of a corporation when they buy its bonds.c.Stockholders enjoy the benefits of a pany39。s profits.d.If a pany runs into financial difficulty, stockholders are paid what they are due before bondholders receive anything.ANSWER:CPOINTS:0 / 1Short Answer1.What